What happens if an employer does not maintain proper Workers’ Compensation coverage?

If an employer fails to maintain required coverage, the Department of Labor may assess significant civil penalties, including multipliers of the unpaid premium and daily fines for each uninsured employee. The employer can also be sued directly by injured workers and loses certain defenses (like claiming the worker was negligent or assumed the risk). In serious or ongoing cases, the state may seek a court order to stop the employer from doing business until they comply.

Source File: Workers’ Compensation FAQs (English)
Law Reference: 19 Del. C. §2374(d)–(g)